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Laxman Pai, Opalesque Asia: Canada's Ontario Teachers' Pension Plan (OTPP) returned a net 2.5% in 2018, bringing its total assets to C$191.1bn ($140.1bn) as of Dec. 31.
Toronto-based pension fund said in a press release that its return was above its custom benchmark's 0.7% return. Ontario Teachers returned 9.7% in 2017.
"In 2018 we were able to generate positive returns even as we navigated some of the most volatile markets in years, thanks to the work we have done to build a diversified investment portfolio that can perform across market scenarios," said Ron Mock, President and Chief Executive Officer.
"Concurrently, we are pleased to report that as of January 1, 2019, we were fully funded for a sixth consecutive year, with 100% inflation protection being provided on all pensions," he added.
As at December 31, 2018, the Plan has had an annualized total fund net return of 9.7% since inception. The five- and ten-year net returns, also as at December 31, 2018, were 8.0% and 10.1%, respectively.
During the year the plan's volatility was subdued compared to what would have been experienced by a more traditional asset allocation. Portfolio diversification - across asset class, geography and other factors - resulted in the Fund outperforming its benchmark by 1.8% or $3.5bn, demonstrating the value Ontario Teachers' members realize with active management.
"Times like these show how continuing to rebalance the p...................... To view our full article Click here
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